Insights

The rise of video-on-demand (VOD) programming choices is not only a great benefit to viewers—it also opens more opportunities for advertisers and content creators to reach them. But advertising strategies should be navigated carefully, as viewers are looking to cut through the clutter.

Many consumers see value in ads, but the value proposition must be right. In fact, more than half of global respondents who say they watch VOD (51%) programming also say they somewhat or strongly agree that ads in VOD content give them good ideas for new products to try. And importantly, nearly six-in-10 (59%) say they don’t mind getting advertising if they can view free content. This sentiment is particularly strong in North America, where 68% are willing to trade their time and attention for free programming.

What’s clear, however, is the need for more relevant ads that speak directly to consumers. Two-thirds of global respondents say most ads in VOD content are for products they don’t want (66%).

“In a crowded media environment, relevant ads and brand experiences are critical for engaging consumers,” said Megan Clarken, president, Nielsen Product Leadership. “Just as technology has made it easier for consumers to control the amount of advertising they see, it has also made it easier for advertisers to reach the right consumers at the right time and in the right place. The advertisers with the greatest brand and sales impact will naturally be those that connect messages about products and services with the people who want them."